Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: MD-0044 and 2021
Award Period: March 11, 2021 through December 31, 2024, liquidated by December 31, 2026
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: Per 2 CFR 200.305(b)8, a payment must not be made to a recipient or subrecipient for amounts that the recipient or subrecipient withholds from contractors to assure satisfactory completion of work. Payment must be made when the recipient or subrecipient disburses the withheld funds to the contractors or to escrow accounts established to ensure satisfactory completion of work.
Questioned Costs: None
Condition/Context: Four of sixty general disbursements tested were related to retainage payable. These expenditures were not paid during the fiscal year and therefore should not be reported on the SEFA.
Cause: The Commission did not have proper policies and procedures in place to ensure the SEFA is prepared in accordance with Uniform Grant Guidance.
Effect: The Commission could overstate federal expenditures on the SEFA.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Commission establish policies and procedures over internal controls to ensure review and approval of SEFA preparation.
Views of Responsible Officials: Management agrees with the finding.